Vox Pop: Is the rise of own-brands good for packaging?David Elliott, 3 September 2009Be the first to comment on this article With frugal shoppers tightening their belts in these straitened times, supermarket own-label brands are becoming an ever more popular option. But is this a good thing for the packaging industry? YES YES YES YES
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12th February 2012
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On balance I would argue it has been good for the industry. It’s put retailers in a position to drive through sustainability strategies, from sourcing to supply, which, given the size of our retail and supermarket industry has helped the packaging industry take great strides forward. The opportunity the recession has created for retailers to launch their own ranges has in turn created more opportunities for packaging suppliers. Those retailers and suppliers in a position to provide value have found a sector where demand has increased, and the increased strategy brought to bear on own label has created a larger market that will continue to bear fruit.
Over recent years, own-label brands have started to target consumers extremely effectively. The rise of own brands can be a good thing for the packaging industry, but only if packaging companies work closely with retailers to provide creative and innovative solutions. Retailers are looking to enhance their offering and differentiate themselves from their competitors and packaging can help them to do this. Packaging companies that can offer a cradle to grave approach, considering everything from aesthetics to environmental impact to optimizing palletisation and merchandising will find themselves in the strongest position.
Clients’ thirst to differentiate themselves from their competition by branding their own products is enormous and of course it makes them less vulnerable from shoppers trying to apply like-for-like price comparisons. All this proliferation of brands is excellent news for the contract packing industry. Either the client has little or no packing facilities of their own, in which case using a contract packer is the only answer. Or for brand owners who do have their own in-house packing operations, the more product variants there are, the harder it is to interrupt their mainstream production lines.
Yes, although the question is rhetorical. Own-label brands are here to stay, and grow, and the benefits to packaging should be viewed more around how branded goods can use this growth as an opportunity. Consumers are already increasingly voting own-label with their wallets. But brands should be the signpost of the category, and surprise and hopefully delight customers through continual innovations. It is through effective innovations and the resulting emotional dialogue with customers that branded goods can retain the true, yet ever shorter advantage. In the end, own-label and branded goods need each other.


